Iqiyi Inc (IQ)
NASDAQ:IQ
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Iqiyi
(NASDAQ:IQ)
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Rating:45Neutral
Price Target:
$1.50
▲(20.00% Upside)
Action:ReiteratedDate:03/20/26
The score is held back primarily by weakened 2025 financial performance—especially the steep decline in operating/free cash flow—and strong negative technical trend signals. The earnings call adds some support via improving membership/ads and overseas momentum plus diversification initiatives, but thin margins and cash/related-party risk keep the outlook cautious; valuation provides limited support due to losses and no dividend.
Positive Factors
Membership recovery and subscriber growth
A sustained >30% YoY rebound and accelerating H2 subscriber growth materially strengthens recurring revenue. A larger, stickier subscriber base improves LTV, reduces reliance on volatile ad sales, and supports predictable cash flows for multi-year content investment and monetization.
Negative Factors
Severe cash flow deterioration
A near-total collapse in operating and free cash flow erodes the company’s internal funding for content and capex. In a content-intensive model, weakened cash generation forces greater reliance on external financing or slower content investment, raising execution and liquidity risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Membership recovery and subscriber growth
A sustained >30% YoY rebound and accelerating H2 subscriber growth materially strengthens recurring revenue. A larger, stickier subscriber base improves LTV, reduces reliance on volatile ad sales, and supports predictable cash flows for multi-year content investment and monetization.
Read all positive factors
Iqiyi (IQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.24B
Dividend YieldN/A
Average Volume (3M)11.62M
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth-10.68%
EPS Growth-127.54%
CountryUS
Employees4,673
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.02
Shares Outstanding530,582,300
10 Day Avg. Volume9,092,642
30 Day Avg. Volume11,621,706
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)0.97
Price to Sales (P/S)0.49
P/FCF Ratio1.33K
Enterprise Value/Market Cap15.70
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit3.38
Enterprise Value/Ebitda3.12
Forecast
1Y Price Target
$2.00Price Target Upside60.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.51
Revenue Forecast (FY)$26.97B
Iqiyi Business Overview & Revenue Model
Company Description
iQIYI, Inc., together with its subsidiaries, provides online entertainment services under the iQIYI brand in the People's Republic of China. The company offers various products and services comprising internet video, online games, live broadcastin...
How the Company Makes Money
iQIYI primarily generates revenue through (1) membership/subscription services and (2) advertising. Membership revenue comes from paid subscribers who purchase recurring subscriptions (and related premium offerings) to access ad-free or enhanced v...
Iqiyi Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call conveyed multiple growth drivers — membership recovery (30%+ YoY), sequential revenue growth, strong advertising and content distribution momentum, international expansion, successful IP franchises, and new experience and AI initiatives — balanced against modest profitability (2% non-GAAP margin), a restrained cash position (RMB 4.7 billion) with a large related-party loan, and some sequential declines due to seasonality and cost pressures. Overall, management presented a constructive outlook emphasizing diversification (overseas, experience, AI) and operational focus on higher-quality content.Positive Updates
Q4 Revenue Growth (Sequential)
Total revenues for Q4 were RMB 6.8 billion, up 2% sequentially, marking a return to sequential revenue growth.
Negative Updates
Quarterly Membership Seasonality
Despite strong YoY membership growth, membership services revenue was down 3% sequentially in Q4 (RMB 4.1 billion) due to seasonality, indicating near-term variability in sub growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue Growth (Sequential)
Total revenues for Q4 were RMB 6.8 billion, up 2% sequentially, marking a return to sequential revenue growth.
Read all positive updates
Company Guidance
Management guided that 2026 will focus on three priorities—strengthen the domestic core, sustain/accelerate overseas and experience businesses, and build an AIGC ecosystem—and reiterated a series of operating and financial metrics: Q4 total revenue was RMB 6.8 billion (+2% sequentially) with membership services RMB 4.1 billion (‑3% seq), online advertising RMB 1.4 billion (+9% seq), content distribution RMB 787.7 million (+22% seq) and other revenues RMB 547.9 million (‑6% seq); content cost was RMB 3.8 billion (‑5% seq) and total operating expenses RMB 1.4 billion (+2%); non‑GAAP operating income was RMB 143.5 million (2% margin) and cash/cash‑like balances totaled RMB 4.7 billion (note a USD 636.6 million loan to PAG recorded in prepayments); membership services grew >30% YoY in 2025 with H2 accelerating to 40%, overseas membership revenue rose 40% in Q4 (Brazil/Mexico/Indonesia +80%+), the firm retains #1 viewership share for long‑form and movies (movies #1 for 16 consecutive quarters), five titles exceeded a 10,000 popularity score, and management expects AI‑led commercial film production in 2–3 years; experience business metrics include iQIYI LAND opened Feb 8 with average on‑site transaction ≈RMB100, two more parks planned this year, management targets ~100% revenue growth in experience/IP consumer products in 2026 and sees 1–2x upside in peak single‑day revenue; content pipelines and tech: >70% of a 20,000‑title micro‑drama library is free, >150 original micro titles, a >10,000 micro‑animation pipeline, Nado Pro in close beta, Taodou World with ~1,700 NPCs, and ~1,000 patent filings in 2025 (12,000+ patent portfolio).Iqiyi Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
55
Neutral
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.55B | 29.23B | 31.87B | 29.00B | 30.55B |
| Gross Profit | 5.59B | 7.27B | 8.77B | 6.68B | 3.04B |
| EBITDA | 223.07M | 1.82B | 17.25B | 14.34B | 12.10B |
| Net Income | -200.69M | 764.06M | 1.93B | -136.21M | -6.19B |
Balance Sheet | |||||
| Total Assets | 46.71B | 45.76B | 44.59B | 46.05B | 42.47B |
| Cash, Cash Equivalents and Short-Term Investments | 4.70B | 4.47B | 5.38B | 7.92B | 4.35B |
| Total Debt | 15.55B | 14.19B | 15.29B | 22.53B | 17.57B |
| Total Liabilities | 33.39B | 32.39B | 32.41B | 39.70B | 36.80B |
| Stockholders Equity | 13.33B | 13.37B | 12.09B | 6.25B | 5.19B |
Cash Flow | |||||
| Free Cash Flow | 9.72M | 1.94B | 3.25B | -340.34M | -6.35B |
| Operating Cash Flow | 102.92M | 2.11B | 3.35B | -70.57M | -5.95B |
| Investing Cash Flow | -318.51M | -2.44B | -1.74B | 265.98M | 1.26B |
| Financing Cash Flow | 1.04B | -1.37B | -4.29B | 4.47B | -2.96B |
Iqiyi Technical Analysis
Negative
1.25
Price Trends
1.55
Negative
1.79
Negative
2.00
Negative
Market Momentum
-0.06
Negative
37.03
Neutral
35.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IQ, the sentiment is Negative. The current price of 1.25 is below the 20-day moving average (MA) of 1.28, below the 50-day MA of 1.55, and below the 200-day MA of 2.00, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 37.03 is Neutral, neither overbought nor oversold. The STOCH value of 35.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IQ.
Iqiyi Risk Analysis
Iqiyi disclosed 96 risk factors in its most recent earnings report. Iqiyi reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Iqiyi Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $434.92B | 36.11 | 43.25% | ― | 15.49% | 35.54% | |
68 Neutral | $175.68B | 21.11 | 11.35% | 1.10% | 3.61% | 152.34% | |
64 Neutral | $15.11B | 180.68 | 3.40% | ― | 16.61% | 83.98% | |
62 Neutral | $68.05B | 98.11 | 2.05% | ― | -4.29% | ― | |
61 Neutral | $14.89B | 22.61 | 48.36% | 2.47% | 4.37% | -16.22% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
45 Neutral | $1.24B | -64.47 | -1.49% | ― | -10.68% | -127.54% |
* Communication Services Sector Average
IQ
Iqiyi
1.25
-0.39
-23.78%
DIS
Walt Disney
99.17
15.44
18.44%
NFLX
Netflix
103.01
9.88
10.61%
ROKU
Roku
102.47
42.97
72.22%
WMG
Warner Music Group
28.50
-0.05
-0.18%
WBD
Warner Bros
27.44
19.42
242.14%
Iqiyi Corporate Events
iQIYI Unveils Hong Kong Listing Plan, $100 Million Buyback and AI Video Agent Nadou Pro
Mar 30, 2026
On March 30, 2026, iQIYI announced several corporate and business initiatives that underscore its ambitions in capital markets and technology. The company has confidentially submitted a listing application to the Hong Kong Stock Exchange for its C...
iQIYI Posts Weaker 2025 Profitability as Content Costs Rise, Bets on Overseas Growth
Feb 26, 2026
On February 26, 2026, iQIYI reported unaudited results for the fourth quarter and full year ended December 31, 2025, showing modest Q4 revenue growth but significantly weaker profitability compared with 2024. Fourth-quarter revenue rose 3% year on...
iQIYI CFO Jun Wang Resigns; Finance Executive Ying Zeng Named Interim CFO
Jan 21, 2026
On January 21, 2026, iQIYI announced that Chief Financial Officer Jun Wang resigned from his position effective the same day for personal reasons, and that Senior Vice President of Finance Ying Zeng has been appointed Interim CFO while Wang remain...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.